With the impending deprecation of third-party cookies, marketers find themselves at the crossroads of innovation and adaptation. As we bid farewell to this identifier, the emphasis shifts to forging deeper connections, understanding customer needs, and navigating the marketing landscape with data-driven precision. At Experian, we stand as your trusted partner, committed to guiding you through this transition. In this blog post, we’ll explore:
- How third-party cookie deprecation is impacting digital advertising
- Six alternatives to third-party cookies and where they fall short
- How Experian can help you navigate a cookieless world
Four ways third-party cookie deprecation is impacting digital advertising
Third-party cookie deprecation is causing significant challenges within the AdTech industry, manifesting in four key areas:
- Reach: Advertisers and demand-side platforms (DSPs) will face difficulties in reaching their target customers due to the absence of third-party cookies.
- Understanding audiences: Advertisers will find it challenging to understand the demographics and behaviors of their customer base without third-party cookies. Similarly, publishers are struggling to identify their audiences accurately, resulting in less addressable and appealing inventory.
- Measurement: Measurement providers may encounter obstacles in accurately assessing the effectiveness of advertising campaigns. Additionally, DSPs are finding it hard to measure the impact of their ads without the assistance of third-party cookies.
- Matching: Data providers may experience challenges in matching users with the appropriate audience segments, leading to difficulties in delivering targeted advertising.
Six alternatives to third-party cookies
As the deadline approaches for Google’s removal of third-party cookies from Chrome by the end of 2024, marketers are scrambling to discover alternative methods for delivering effective advertising. Fortunately, various alternatives are emerging. However, the abundance of options can create confusion rather than clarity. Which alternatives are worth considering? Here are six compelling alternatives to third-party cookies:
1. First-party data
Acquiring consented first-party data directly from users is becoming increasingly vital as it can lay the groundwork for more precise targeting.
2. Universal IDs
Alternative identifiers like The Trade Desk’s UID2 and ID5’s Universal ID are becoming increasingly important, offering the ability to maintain a comprehensive consumer view across channels and platforms, leading to enhanced personalization and addressability across various channels, even in cookieless environments.
3. Identity graphs
As browser-based IDs shift and digital signals decline, the need for an identity graph grows, with companies adopting a “graph-of-graph” strategy by combining their own robust first-party data with licensed identity graphs, as highlighted in recent announcements by industry giants such as Disney, VideoAmp, and Magnite.
4. Contextual targeting
Contextual targeting aligns publisher content with relevant ads, ensuring ad delivery based on content rather than individual identifiers. This privacy-respecting approach is less dependent on third-party cookies, providing effective audience activation.
5. Data collaboration
In a cookieless world, it becomes more difficult for companies to “communicate” with one another. We expect to see more pick up of data collaboration in the market, using addressable IDs and identity resolution to power connectivity between partners and their data sets.
6. Google Privacy Sandbox
The primary goal of Google’s Privacy Sandbox is to continue to deliver valuable consumer information that yields relevant marketing and media strategies, while protecting a user’s privacy.
How these alternatives to cookies fall short
While it’s promising to see numerous alternatives to cookies emerging, it’s essential to recognize that each alternative has its limitations and is not a perfect one-to-one replacement for third-party cookies. Let’s review the shortcomings of these alternatives, and then we’ll walk through how Experian can help you navigate these alternatives to cookies.
1. First-party data
First-party data, which is data directly collected from your users with their consent, is highly valuable. However, you will likely face limitations in terms of the number of consumers in your database, the identifiers linking them, and the insights into their demographics and behaviors. To overcome these limitations, it’s essential to expand both the quantity and quality of your first-party data.
2. Universal IDs
Universal identifiers are valuable for tracking users across different devices and websites. However, no single universal identifier has enough reach to fully replace third-party cookies. Universal IDs are most effective in terms of scaling, when they are combined with other universal identifiers or alternative addressable identifiers.
3. Identity graph
Identity graphs excel at connecting digital audiences. However, establishing an identity graph from scratch is a significant accomplishment, demanding expertise, financial resources, and more.
4. Contextual targeting
Contextual targeting and advertising aim to place your ads next to relevant content. However, there’s a risk that your ads might appear alongside misaligned content, reaching audiences who are uninterested or unintended.
5. Data collaboration
Data collaboration is beneficial for enhancing your consumer data and informing your strategies. However, it can introduce potential data security risks, if not done in the right framework, and may lead to subpar matching results due to issues like data hygiene or discrepancies in identifiers.
6. Google Privacy Sandbox
Google’s Privacy Sandbox aims to balance effective advertising with consumer privacy and data security. However, it lacks transparency and has yet to prove its effectiveness, raising concerns about whether it meets industry standards.
How Experian can help you navigate a cookieless world
As an industry innovator and leader in data and identity, we’ve developed solutions to address the challenges posed by the shift away from third-party cookies. Our products are designed to adapt to these changes and ensure your success. We’ve anticipated industry shifts and proactively prepared our offerings to support you through this transition. Below we outline how our products are ready to support you through the transition away from third-party cookies.
Graph
The Experian Graph facilitates connectivity without relying on cookies. Our Graph helps ensure connectivity by supporting a variety of addressable identifiers, not limited to but including universal IDs, like Unified ID 2.0 (UID2) and ID5’s universal ID. Whether you have first-party data or not, our Graph can be used to expand the reach of your first-party data or provide you with access to the full scope of our Graph’s 126 million households and 250 million individuals.
Activity Feed
Supported by our Graph, Activity Feed can help you deliver digital connectivity and resolution in a cookieless environment. Activity Feed can resolve disparate activity to a single, consumer profile. It can expand the quantity of addressable identifiers associated with your first-party consumers. Additionally, Activity Feed, by joining disparate activity and identifiers, provides clearer insights, more addressable targets, and more holistic measurement.
Our Marketing Attributes and Audiences
In a cookieless environment, our Marketing Attributes and Audiences provide valuable information and insights about who your consumers are, like their demographics, shopping patterns, and more, to facilitate more informed decision-making. You can use our Marketing Attributes and Audiences to enrich your first-party data, giving you crucial insights into your customers so you can make informed, strategic decisions. They can be matched to universal identifiers, expanding their utility. Additionally, our Marketing Attributes and Audiences are sourced from non-cookie dependent offline and digital sources, ensuring they are unimpacted by third-party cookie deprecation.
Collaboration
While third-party cookies have primarily served to connect data in the industry, many companies are turning to data collaboration in lieu of having third-party cookies. In doing so, they can connect data with key partners, which they can use to make better media decisions.
Experian Collaboration helps make data collaborations better, powering higher match rates by using the various identifiers supported in our offline and digital graphs. Through our current support of collaboration in three environments, within Experian, through crosswalks, and in clean rooms, such as AWS, InfoSum, and Snowflake, we ensure that you only share the data you intend to share, while the sensitive information remains secure. This way, your partner and you can focus on how to use the data to benefit you and not on anything else.
Get started with alternatives to third-party cookies today
While many view the deprecation of third-party cookies as disruptive, we see it as an opportunity for the industry to embrace a new era of advertising while prioritizing consumer privacy. Achieving this balance is crucial, and Experian’s solutions are here to help you navigate it effectively. As the AdTech industry gravitates toward a few tactics to effectively advertise in the cookieless future, Experian is here to understand your core needs and recommend products that will help.
In a rapidly evolving marketing landscape, Experian stands as your trusted partner, offering expertise in data-driven and identity solutions. Connect with our team to seamlessly transition into these alternatives to third-party cookies, ensuring your marketing strategies remain effective, privacy-compliant, and focused on meaningful connections.
Get started today
Latest posts
As a marketer, you know that the digital landscape is always changing. That's why it's important to make sure you're equipped with the right tools every step of the way – no matter how rapidly things change. You want to ensure your strategies and tactics stay ahead of any changes in technology or consumer behavior, so what new marketing strategies should be in your toolbox in 2023? Discover what industry leaders from Experian, Adweek, FreeWheel, Tubi, and Instacart had to say about what should be in every marketer's toolbox in 2023 at Cannes. Keep reading to learn the top four new marketing strategies you need in your marketing toolbox for 2023 and beyond. 1. A plan for signal loss The first item you should have in your marketing toolbox is a plan for signal loss. The phasing out of third-party cookies presents both a challenge and an opportunity. This shift not only poses challenges but also opens up opportunities for alternative strategies. On the one hand, it makes it more difficult to track users across channels and measure the effectiveness of marketing campaigns. On the other hand, it forces marketers to focus on building relationships with their customers and collecting first-party data. Consumer behavior is changing When we consider signal loss in a traditional sense, we think of the implementation of iOS 14, where we couldn't track click-based data from campaigns. It's important to reflect on the fact that the paid media ecosystem needed to adapt to new consumer realities. Younger demographics are less likely to click on ads and instead engage in video environments. They discover brands through platforms like TikTok or Instagram. It's crucial to understand how people behave, where they discover products, and where influence takes place. This understanding becomes even more vital when targeting a young audience demographic. Four things to consider when planning for signal loss There are four things you should consider when building out a plan to address signal loss and fragmentation. Channel diversification You need to reach your customers on the channels where they are already spending time, such as social media, email, and your own website. You should work with platforms that have first-party data to understand how your customers interact with your brand. Data privacy You need to be transparent about how you are collecting and using customer data. You should also anonymize data whenever possible. First-party data First-party data is now more crucial than ever, awakening its importance in shaping our actions. The combination of channel diversification and first-party data will be essential in the years to come. By focusing on these two areas, you can build stronger customer relationships and create more effective marketing campaigns. Contextual targeting Contextual targeting is emerging as a viable method to deliver more relevant content to your intended audience. By embracing signal loss, the alternative new marketing strategies that are emerging as a result, and adopting a privacy-centric mindset, you can navigate cookie deprecation. 2. Collaboration The second item you should have in your marketing toolbox is collaboration within the AdTech ecosystem. To address signal loss and changes in privacy, moving toward a more collaborative, holistic marketing ecosystem is key. Two ways we can achieve better collaboration Here are two ways we can create better collaboration in the AdTech ecosystem. Enable interoperability We should aim to create an ecosystem that fosters collaboration between marketers, publishers, advertisers, ad tech companies, and more. When we enable seamless interoperability, everyone can use the best data available. Use clean rooms We are witnessing a growing trend of collaboration between parties, where buyers and sellers share data in these secure environments. Clean rooms can help us develop data strategies in a controlled manner. 3. Generative artificial intelligence (AI) The third tool you should have in your marketing toolbox is generative AI. Benefits of implementing AI There are three main benefits to implementing AI within your marketing strategy. Enables creativity Although AI and machine learning have long been part of our toolbox, this moment marks an extraordinary acceleration that expands our capabilities. Copywriters can now create visuals, and art directors can write compelling copy. It's an extension of what we're capable of, potentially alleviating the burden of repetitive tasks and enabling more time for collaboration, creativity, and strategic thinking. By embracing generative AI, we can preserve valuable talent, prevent burnout, and invigorate the advertising industry. Enables more personalization The rise of personalization with AI has significantly increased the demand for tailored experiences. People now willingly allow AI agents to read their emails, hoping for quicker and easier responses. This shift signifies a change in the previous emphasis on privacy and consumer preferences. Consumers now see the value in exchanging personal information for more targeted services. E-commerce has already witnessed this transformation with customized ads based on individual preferences and behaviors. For instance, if a CPG brand notices you're not purchasing meat, they won't serve you ads for meat products. However, it's crucial to strike the right balance between being useful and intrusive. Users want relevant information that aligns with their needs without feeling intruded upon. As we navigate this path, we must ensure that personalization remains beneficial and respectful of user preferences. Helps drive impactful results and customer satisfaction The tool is a perfect analogy for improving your job performance and business operations. Having the right data input to feed the machine is crucial, just like using the right ingredients to cook a perfect meal. Keeping the consumer in mind throughout the process is key. You can ensure customer satisfaction by putting the right ingredients in and allowing the machine to work its magic. Scaling up, repeating, and refining the process will drive impactful results. 4. First-party data The fourth item you should have in your marketing toolbox is first-party data. Benefits of implementing a first-party data strategy Moving from a third-party cookie world to a first-party cookie world brings about significant transformation. Here are two benefits of implementing a first-party data strategy. Greater accuracy The shift to first-party cookies ensures greater accuracy, enabling us to establish critical mass through secure partnerships. This empowers us to strengthen and refine our personalization capabilities, much like Amazon's ability to anticipate customer needs before they arise. When you can predict and understand customer behaviors with remarkable precision, you can reach your customers with tailored and creative ads. "Building a robust first-party data strategy should be a central discussion for marketers, involving key stakeholders such as CEOs and CMOs. Quality and precise data are paramount, and while first-party relationships with consumers form the foundation, even established brands benefit from strategic partnerships. Together, we can unlock the potential of accurate and meaningful data-driven marketing."jeremy hlavacek, cco, experian Identify high-growth audiences First-party data can help you identify audiences with the greatest growth potential, ultimately optimizing marketing dollars for greater efficiency. Watch our Cannes panel for more new marketing strategies for 2023 We hosted a panel with Adweek in Cannes that covered what should be in every marketer's toolbox this year. Check out the full recording below to hear from leaders at Tubi, Freewheel, Instacart, Adweek, and Experian. Watch now Check out more Cannes content: Our key takeaways from Cannes Lions 2023 Insights from a first-time attendee Exploring the opportunities in streaming TV advertising The future of identity in cookieless advertising Maximize ad targeting with supply-side advertising Follow us on LinkedIn or sign up for our email newsletter for more informative content on the latest industry insights and data-driven marketing. Get in touch Latest posts
It's back-to-school season. Knowing your target audience is an essential piece of planning a successful back-to-school marketing campaign. To get the most out of your marketing investment this back-to-school season, it’s important to understand how to identify and segment back-to-school shoppers so you can make sure that the right message reaches the right group at the right time. In this blog post, we'll cover how you can segment your target audience to create and deliver custom messaging tailored to individual groups. We'll discuss segmentation methods that uncover: Who they are Where they live What type of person they are How they behave and spend Here are our tips to accurately define and target your back-to-school marketing audience. Maximize back-to-school marketing with customer segmentation Customer segmentation is the process of dividing your audience into smaller groups based on common characteristics such as demographics, behaviors, psychographics, geographics, and more. The purpose of customer segmentation is to create a more personalized and effective approach to marketing. By understanding the unique needs and preferences of each segment, you can tailor your messaging, campaigns, and content to resonate with your customers on a deeper level. Benefits of customer segmentation Three benefits of customer segmentation include: Improved audience targeting Higher engagement rates Increased ROI Instead of addressing your entire customer base with generic messaging, segmentation enables you to deliver custom campaign messaging that speaks directly to each group. This personalized approach helps build trust and loyalty with your customers over time. Customer segmentation also allows you to better understand your customers, their motivations, and pain points, ultimately leading to more effective marketing campaigns. Types of customer segmentation When it comes to segmenting your customers, there are several methods to consider. By experimenting with different approaches, you can find the best fit for your business. Keep in mind that the most effective customer segments will differ depending on the industry. Let's review four types of customer segmentation that you can implement as part of your back-to-school marketing strategy. 1. Demographic segmentation Demographic segmentation categorizes consumers into groups based on shared demographic characteristics such as age, gender, income, occupation, marital status, and family size. For example, targeting college students during the back-to-school season with promotions on laptops is likely to be more effective than targeting retirees who may have less interest in such products. 2. Behavioral segmentation Behavioral segmentation divides customers into groups based on their demonstrated behaviors. This method sorts customers by their knowledge of products or services, attitudes toward brands, likes/dislikes about offers, responses to promotions, purchasing tendencies, and usage of products/services. Behavioral segmentation can help you identify the highest-spending customer segments, so you can budget and target more effectively. Through this type of segmentation, you can analyze each group's patterns, discover trends, and plan informed marketing moves for the future. In a back-to-school campaign, you could use behavioral segmentation to identify students who prefer to shop locally. You could then target students who value supporting local businesses and emphasize the importance of buying from local retailers during the back-to-school season. 3. Geographic segmentation Geographic segmentation involves dividing your target market into groups based on their physical locations. Geographic segmentation reveals aspects of a local market, including physical location, climate, culture, population density, and language. In a back-to-school campaign, you could use geographic segmentation to identify target audiences in colder climates who may be more interested in winter clothing and gear. You could also use geographic segmentation to target students living in college towns with messaging that speaks directly to campus life. 4. Psychographic segmentation Psychographic segmentation groups customers based on psychological factors such as lifestyle, interests, personality, and values. In a back-to-school campaign, you could use psychographic segmentation to target students who value sustainable practices, promote eco-friendly products, or offer incentives for recycling and reusing items. Watch our 2024 video for tips from industry leaders for back-to-school In our new Q&A video with Experian experts, we explore changing consumer behaviors surrounding back-to-school shopping in 2024. In the video, we discuss: Anticipated shifts in consumer behaviors and shopping habits Tactics we predict marketers will employ to navigate signal loss Which channels will be the most successful And more! Watch now Get in touch Latest posts
As I walked onto the buzzing streets of Cannes for the first time, my senses were immediately captivated by the energy that filled the air. I'd heard plenty about Cannes Lions, the globally revered International Festival of Creativity, but being in the midst of it all was an entirely different ballgame. 1. A visual extravaganza From the moment I woke up from my two-hour nap, (Seattle was a long way to travel to Cannes), I was awestruck by the grandeur of the festival. Usually known for its tranquil beauty, the city was alive and brimming with imagination. Massive installations, eye-catching billboards, and immersive media experiences were scattered over the two-kilometer stretch of La Croisette, transforming the city into a canvas of creativity. I saw firsthand how abstract concepts could be turned into palpable realities, especially those of Spotify, Yahoo!, and Stagwell's Sport Beach with their basketball court with stadium seating setup. 2. Nuggets of wisdom shared in panels The festival's days were jam-packed with thought leadership panels – each a masterclass in the ever-evolving universe of AdTech. Fortunately, as a member of the Experian team, I didn't have to travel far for unique panels; we hosted four panels throughout the week, and I was immersed in dynamic discussions about new trends, groundbreaking ideas, and the challenges ahead. One recurring theme that resonated with me was the intricacies of authentically connecting with consumers. Finding genuine human connections amidst digital chaos can be challenging in today's tech-driven world. These dialogues provided incredible insights into how we could maintain the delicate balance between personalization and privacy and effectively use artificial intelligence (AI) to enhance customer engagement without compromising the human essence in advertising. Watch our panels 3. Connect with your peers If Cannes Lions is known for anything apart from its creative inspiration, it's the unparalleled networking opportunities. The festival allowed me to interact with professionals from all corners of the world. Each exchange was not merely about exchanging contact details but building meaningful relationships. Will these first arcs lead to meaningful friendships? I sure hope so. 4. A comprehensive learning opportunity The most crucial aspect of the festival was the immense opportunity it offered for learning. I found myself constantly absorbing new information and insights from the panels, every conversation, and every chance meeting. 5. Juggle your time Effective time management was crucial for maximizing my Cannes experience, with many things happening concurrently. I would give myself a B- for this. During the day, when I had some downtime, I could have ventured to another panel, attended a networking event, or taken in a view of the city I didn't get. That's the biggest challenge, and the beauty of Cannes Lions is its unique blend of professional learning opportunities set against the backdrop of a picturesque seaside town, but how do you do it all? 6. Relish the experience My week at Cannes was filled with intense learning, insightful conversations, and eye-opening experiences, leaving me mentally drained and intellectually stimulated (I think those can happen concurrently). The festival left me with a renewed appreciation of why we do what we do in the AdTech industry: supporting the pursuit of creativity, the drive for innovation, and the desire to forge meaningful connections. Cannes Lions was more than just a festival – it was a week of stepping out of my comfort zone, gaining deep insights, and establishing relationships that I hope will last a lifetime. As I boarded my flight out of Nice, surrounded by adults with layers of event access bracelets, I was inspired and stacked with knowledge and ideas that will help drive meaningful marketing opportunities with our content and partnerships. The grandeur, the learning sessions, the networking, and the profound lessons exceeded all my expectations. My week at Cannes Lions was unique, intense, insightful, and unforgettable. It was an experience I can't wait to repeat! Follow us on LinkedIn or sign up for our email newsletter for more informative content on the latest industry insights and data-driven marketing. Get in touch Latest posts